By on July 13, 2021

Chevrolet

Chevrolet’s C8 Corvette has been in demand.

So much so that some dealers are commanding markups up to $100K over MSRP.

Considering the last Corvette we tested was at $79K, which we felt was a bargain for the performance, that means you could pay an exorbitant amount for a C8.

The response from General Motors amounts to a shrug.

Tony Johnson, GM’s director of car and crossover marketing said as much to GM Authority.

“Dealers are the interface with the customers, so customers make the deal with the dealer, so we leave that side of the business to our great dealer partners, who I think do a fantastic job, honestly, meeting customer needs and helping them through the journey,” Johnson told the site.

When asked if the company could or would do anything to keep dealer markups low, he responded thus: “Well, it’s supply and demand. We supply them, the dealers meet the demand.”

Obviously, one thing Chevy could do is just build more cars, but production delays have been a problem, thanks to a labor strike and COVID-related plant shutdowns, as well as the semiconductor chip shortage.

Still, Chevy sold over 20K cars in 2020 and appears to be on track to easily break that mark in 2021 — over 14,000 cars have moved already.

While dealers are within their right to charge huge markups on a car that’s in high demand and short supply — that’s capitalism, baby — it often feels gross and exploitative. Especially when the markup is higher than the MSRP.

We suggest waiting if you want a Corvette. If not, you might be paying a lot extra for the privilege of being impatient.

[Image: Chevrolet]

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38 Comments on “Report: GM Not Bothered By Corvette Markups...”


  • avatar
    APaGttH

    But the B&B said it would never sell and the buttons for the HVAC were a deal breaker and no manual and it isn’t really that fast and pffftt dual zone climate control is an OPTION. AN OPTION!?!?!

    • 0 avatar

      It is not a Japanese car period. And is not Porsche either. No one will pay mark ups. In reality GM will sell them with a ton of cash on the hood.

      • 0 avatar
        islander800

        Hey, Porsche just internalizes the “screw the consumer”, not leaving it up to the dealers, as their options list is designed to extract every last dollar out of their faithful consumer base’s pockets – because, supply and demand. Maybe Porsche is smarter than GM, taking the extra bucks off the table for themselves instead of the dealers riding their coat tails, because hey, it’s GM’s “true believers\'” sweat and tears that produced such a ground-breaking machine, not the guys pushing the iron out the door…

        • 0 avatar
          Astigmatism

          Judging from the window stickers at the dealer where I get my car serviced, I can assure you that Porsche still leaves plenty of “screw the consumer” up to the dealer.

      • 0 avatar
        golden2husky

        …It is not a Japanese car period. And is not Porsche either. No one will pay mark ups. In reality GM will sell them with a ton of cash on the hood…

        Well, they are not Japanese, or Porsche, so on that you are correct. But there is no “ton of cash” on the hood. In fact, people are paying $20-30K over MSRP and have been for quite awhile. Facts, not fiction. A few model years in the demand will slow just like it does for most vehicles. C7 started the same way, but free of production chokes like strikes or Covid, they sold well over 30K in the first MY run. And many dealers wanted a “more reasonable” $5 to 10K for those with no patience.

  • avatar
    dwford

    One could argue that GM is just wildly underpricing the car compared to similarly capable cars, and that buyers are simply paying the correct price for the performance.

  • avatar
    Mike A

    I would expect if this pricing continues then GM will increase the price significantly and capture some of the excess. Honda did that with the type R.

  • avatar
    SCE to AUX

    GM is correct.

    In fact, I’m sure they like the current climate; cheap Corvettes would be an insult.

    Guess who might be last to adopt the direct sales model?

  • avatar
    Socrates77

    The thing is overrated, cheap interior plastics everywhere. You could buy a lexus coupe or any german coupe and get a quality made car. If you want performance get a tesla. I can’t believe people think a chevy is worth that much.

    • 0 avatar
      CoastieLenn

      At the price point of some of these markups? Absolutely not worth it. However, at or near MSRP, you can’t deny the fact that it makes a HUGE case for itself. There’s nothing in that price range that can do what the C8 does. Nothing. People looking at Corvette’s don’t want a Lexus or BMW luxury or image, they want the visceral feel of knowing that that Lexus or BMW that pulls up next to it is likely to get embarrassed by a car costing 2/3 the price.

      I’m no GM fan, I dont even particularly like Corvettes past 1996, but not since Ford introduced the GT in 2005 (at the time, a $105k car that was stomping holes in Ferrari 360’s and Lambo Gallardo’s for twice the price) has an American car had the ability to compete with the big toys for even half of the price.

    • 0 avatar
      pmirp1

      Get your head out of the sand of 1970s

    • 0 avatar
      Art Vandelay

      “…or any german coupe and get a quality made car.”

      The Corvette’s interior plastics are far nicer than the cab of a wrecker which you are likely to spend considerable time in with your “quality German coupe”.

  • avatar
    Fred

    The price you pay to be the first on the block. Besides how many of those buyers are putting their cars away for future profits at the auction? The hot Corvette right now is the last manual transmission cars. Get them while you can.

  • avatar
    Master Baiter

    Predictable.

    So much for this being a performance bargain.

  • avatar
    DenverMike

    So they throw them a bone in the rare occasion. GM has been screwing its dealer victims this whole century, if not longer with shoddy, inferior chinesium builds and endless misfortune.

    • 0 avatar
      stuki

      So that’s why their dealers “victims” are such champions of letting them sell directly through Amazon and the like…….. Instead of acting like card carry members of the useless leechocracy…

  • avatar
    pmirp1

    GM has a few cars that Mercedes would give an eye for to have.
    Corvette, Tahoe, Yukon, Escalade are beyond great. They are generational cars and SUVs.

    Soon once they improve their big truck interiors, add that to the list.

    And last, the new electric Hummer.

    Buy GM stock boys and girls.

  • avatar
    dal20402

    Kissing up to the dealers, which is probably needed because GM has been giving them a lot of difficult products lately. Pickups that were universally agreed to be ugly, new SUVs that had big reliability stumbles out of the gate, an aging and decontented Equinox in the money segment, a new Traverse that’s not much better than the old one… the list goes on.

  • avatar
    ToolGuy

    Translation: Chevrolet dealers are due, after all the crap we have put them through (DenverMike and dal20402 beat me to it). The buyers won’t miss another 80 grand or so of Monopoly money, so all good.

    [Question: When a person is quoted as saying “…, honestly, …” what is that really saying??]

  • avatar
    gasser

    This isn’t exactly news. Dealers have been tacking on mark ups since at least 1972 when I paid over sticker to get a new 1073 240Z. If you wanted one, they had one, but you had to buy, the mag wheels, tire upgrade, bumper bars and some other crap. Added about $1400 to a $3700 car!! So a $65-$70K Corvette for $100K sounds about right.

  • avatar

    I think do a fantastic job, honestly, meeting customer needs and helping them through the journey….says the flack…

    What part of a massive ADP sticker is either one ? This is as good as Realtors saying “It’s a Great Time to Buy !” in sincerity.

  • avatar
    DenverMike

    It is mid engine so I can overlook quite a lot. I don’t see Toyota, Lexus or any other “domestics” answering it and yeah Ford GT, I know. You could say it’s a new V8 Fiero without the fires and Chevette parts.

  • avatar
    Art Vandelay

    I think if you must have one now, you are going to have to pay up. I know 2 people that got them at MSRP however…they had to wait over a year though.

    I’d wait it out at this point.

    • 0 avatar
      mcs

      There’s a state-by-state list of what dealers are at MSRP on Corvette forum if anyone’s interested. Don’t know what the wait is though. Waiting might be a good thing since the 2023 interior will be supposedly upgraded.

      https://www.corvetteforum.com/articles/where-to-buy-2020-corvette-at-msrp/

    • 0 avatar
      DungBeetle62

      GM S.O.P. at this point would normally be to produce as many as possible, only to be left with piles and piles of inventory once the initial rush of demand passes, after which they declare the car a failure.

      All of this has happened before, and all of this will happen again…

  • avatar

    “While dealers are within their right to charge huge markups on a car that’s in high demand and short supply — that’s capitalism, baby — it often feels gross and exploitative.”

    I don’t argue with the last part of that quote, but no one has the proverbial ‘gun to their head’ to pay those prices. The ask can be what it is, you don’t HAVE to pay the ask. You have a bit more control over that than you may think.

    • 0 avatar
      Astigmatism

      Yeah, I’m struggling to see the issue here. This isn’t wartime profiteering or hoarders buying up all the Purell and reselling it for $50 a bottle. This is an expensive, in-demand toy. If you’ve got $175k to burn and you want a Corvette over the alternatives, go for it. If you’ve got $75k and you want a Corvette, you’ll have to wait for the people willing to pay $100k more than you to get theirs first.

      • 0 avatar
        JMII

        This. Dealers have always added mark ups to in demand vehicles. The C8 is both in demand and in short supply due to production issues. GM wanted 40k out the door but could only made 20k.

        As mentioned by others you can easily get a C8 at MSRP… but you’ll be waiting nearly a year for your shiny new toy to arrive. In mean time C7’s (like mine) are selling for big bucks as the lack of trade ins have resulted in very few on the used car lot.

  • avatar
    Syke

    Considering I had a McLaren 7-something-or-other (724S?) pull up next to me at a traffic light today, and it took me about 30 seconds to realize it wasn’t a C8 Corvette, I can understand how the dealers are getting away with it.

  • avatar
    Socrates77

    A lot of people where having issues with the frunk flying open while driving. That’s GM quality for you. Cheap made cars and people buy them because they never owned a Porsche before. They don’t know a well made car.

    • 0 avatar
      golden2husky

      No, there were *some* reports of the frunk opening while in motion. Corvette Forum covered it pretty well. As for a Porsche being a better made car, think of it this way. The delta in price between a base C7 and a base 911 (same model years) would basically buy an entry-level BMW. So, yeah the Porsche damn well should be a better made car. And it is.

      I can’t speak to the C8, but the weak points of the C7, quality-wise, was the general inconsistency of exterior fit/finish. Most came out just fine, but too many for a modern car were found to have panels that didn’t fit as well as they should. Also, some cars were affected with excessive orange peel in the paint. So if you are going quote workmanship issues, at least be accurate. I would not be surprised to find out that the C8 has the same body panel issues as the C7. Paint problems should not be an issue as there is a brand new paint facility in the Bowling Green assembly plant. Then again, look at virtually all new cars – most sport way too much orange peel.

  • avatar
    Garrett

    Dealers near me are marking up Tahoes and Suburbans.

    Frankly, I would never pay markup for a car. Period. If I was interested in purchasing a car with a markup, I would politely inform the dealer that the markup will not be happening. If they insist upon it, then I can take my business elsewhere.

    GM makes the cars, if they want to add $10k or $100k to the price, that’s their choice. The dealer adding to the price is like a scalper buying up all the concert tickets and then trying to charge 3x face value – basically, creating no economic value, and only functioning as a parasite.

    On second thought, I’d probably walk off the lot if I see dealer markup on a car I was interested in. Tells me everything I need to know about the dealer.

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